Big defense contractors tanked the week after Trump won the election. The Republicans won’t get blamed for being too soft on defense, so they needn’t be strong on it. And as we’ve seen, Trump won’t like big firms charging him big-ticket prices.
If you’re doing defense, think smaller, cheaper and diversified, such as Textron, (TXT, Financial) led by its smaller, cheaper Cessna line of planes, bought by defense and nondefense customers alike.
TXT data by YCharts
United Technologies (UTX, Financial) is bigger but has a similar profile.
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